How Does Wage Garnishment Work in Indiana?

Do you know what wage garnishment is? Many people in Merrillville have never heard of wage garnishment unless they have dealt with it firsthand. Wage garnishment is a court order, or a mandate from a government agency that allows a creditor to automatically deduct money from your wages. The order is sent to your employer so that the money will come out of your paycheck before you ever receive it. There are different rules and laws that apply to different kinds of debt and there are limits to the amount of money that can be garnished from your wages.

In Indiana, until a creditor has received a court order from a judge stating that you do indeed owe money, a judgement, it cannot receive a wage garnishment. The exceptions to the rule include situations where you owe unpaid income taxes, defaulted student loans or child support. Fortunately, Indiana wage garnishment laws also prevent a creditor or creditors from taking too much of your income. Those laws are designed to protect those who are in debt so they still have enough money to pay their living expenses. In Indiana, the laws are designed to mainly track federal wage garnishment limits. If more than one creditor is garnishing your wages at the same time, then the maximum amount that can be garnished by all of your creditors combined is 25 percent.

Meanwhile, if you owe any of the previous mentioned debts – unpaid income taxes, defaulted student loans or child support – then creditors do not have to get a court order to start garnishing your wages. The amounts can also vary greatly. For example, if you are behind in child support then up to 60 percent your wages could be garnished if you do not support another spouse and/or child. If you do, then your wages can be garnished up to 50 percent. For unpaid student loans, creditors can take as much as 15 percent, and for unpaid taxes, the amount the government can take depends on your deduction rate and the number of dependents you have.

Having your wages garnished is never a pleasant experience. For some people it can be a heavy burden to bear. If you are experiencing a wage garnishment you can do something about it. Filing for bankruptcy is an option. In any case, you should speak with a knowledgeable bankruptcy attorneys in Merrillville as soon as you can. Don’t get further and further into debt. At Whitten & Whitten we can help you battle wage garnishment. Just click here to contact us online or give us a call at 219-765-0555.